Procurement Annual Report

Financial Year 2016/2017

Page 1 of 15

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SDS Annual Procurement Report 2016/17

Contents

1. Introduction ................................................................................................................................. 2

2. The Procurement Journey ........................................................................................................... 3

3. Procurement Reform Regime ...................................................................................................... 4

4. Summary of Regulated Procurements Financial Year 2016/17 ................................................... 5

5. SDS Contracted Expenditure through Regulated Procurements Financial Year 2016/17 ............ 7

6. Value for Money savings ............................................................................................................. 9

7. Supplier Inclusion ...................................................................................................................... 10

The Third Sector .................................................................................................................... 10

Supported Businesses ........................................................................................................... 10

8. Community Benefits .................................................................................................................. 11

9. Learning, Development and Supporting Entrants to the Sector ................................................. 12

10. Continuous Improvement Activity ............................................................................................ 13

Annex A. Summary of regulated procurements expected to commence in the next 2 Financial

Years ............................................................................................................................................ 14

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1. Introduction The Skills Development Scotland Co. Ltd (registered number SC202659) is a public sector contracting authority, subject to the Procurement Reform (Scotland) Act 2014, and as such is required to produce an annual report on our regulated procurement activities. SDS is pleased to publish this, our fourth Annual Procurement Report which contains detail of our regulated and non-regulated procurements and key highlights from the 2016/17 financial year. SDS champions the Scottish Procurement Model through embedding sustainable procurement. Sustainable Procurement is “a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis and generates benefits not only to the organisation but also to society, the economy and the environment”. SDS purchases business critical services intrinsic to our customer propositions. We spend more than 70% of our Financial Budgets through suppliers which deliver services on our behalf. Our key procurement principles incorporate Fairness, Openness, Transparency, Mutual Recognition, Non-Discrimination and Proportionality. This helps our expenditure to leverage fair work practices among our third party providers. We remain committed to supplier inclusion, as detailed in this report, and seek to conduct business with a wide range of providers, including Small and Medium Enterprises (SMES), and third sector / socio-economy organisations, including supported businesses. SDS published its new Corporate Procurement Strategy 2016/20 on 21 December 2016, which includes the 2020 SDS Procurement Vision and Mission Statement and meets the requirements of Scottish Ministers (SPPN 11/2016). As a Scottish public sector contracting authority, this year we also interpreted the new domestic and European procurement legislation and updated our related documentation to implement changes as required. This was a major undertaking which will ensure our continued adherence to all relevant procurement legislation. Within this report we also take the opportunity to detail some of the key achievements of

the SDS Procurement Team during the financial year 2016/17.

Tom Wilson

Head of Procurement (tom.wilson@sds.co.uk )

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2. The Procurement Journey

To ensure consistency of approach in the Scottish public sector, we are asked to adhere to

the Scottish Government’s Procurement Journey, as shown in Figure 1 below. At SDS we

ensure compliance with this model throughout our work, and have been praised by

auditors for the clear way in which our file structures mirror the stages of the journey.

Figure 1: The Scottish Government Procurement Journey

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3. Procurement Reform Regime

The Scottish Procurement Model supports sustainable economic growth, and is internationally acknowledged to be at the leading edge of sustainable procurement, which places greater emphasis on:

socio-economic value

communities, and

the environment. This report provides some detail of how we contribute to these priorities through our work. The main changes introduced by the Procurement Reform Regime are:

additional reporting obligations to ensure greater transparency when awarding contracts

greater focus on sustainable procurement

regular inclusion of community benefits clauses in contract schedules for services

adopting Fair Work practices e.g. living wage accreditation

using smaller contracts lots to ensure fairer opportunities for small and medium enterprises

developing new solutions to meet authorities’ requirements through greater collaboration and more innovative approaches

reducing minimum time limits for procurement exercises, meaning that contracts can be put in place more quickly.

The new legislation came into effect on 18 April 2016. The four key priorities which SDS have interpreted and implemented through the domestic and European legislation are:

1. Light Touch Regime – Due to harmonisation in the EU Regulations. SDS requires to satisfy the standstill period for the National Training Programmes through the Light Touch Regime.

2. Selection & Award (incorporating Equal Opportunities and Fair Work Practices) – SDS ensure consistency in evaluation criteria from the outset of a procurement.

3. European Single Procurement Document – The European Single Procurement Document has replaced the Pre-Qualification Questionnaire through the new EU Regulations.

4. Sustainable Procurement Duty – Before carrying out a regulated procurement, SDS requires to consider in conducting the procurement process if we can improve the economic, social and environmental wellbeing of our contracting area.

Our major National Training Programme for Modern Apprenticeships applied the Light

Touch Regime to meet the new European requirements in the last round of contracting /

commissioning. More robust evaluation processes were also introduced to satisfy the

standstill period. Likewise, new evaluation processes were implemented for the

Employability Fund and greater transparency has been introduced.

We update our externally published contracts register on a quarterly basis. This is available online at: http://www.skillsdevelopmentscotland.co.uk/about/policies/procurement/

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4. Summary of Regulated Procurements Financial Year 2016/17 Our regulated procurements for the financial year 2016/17 are listed below.

Contract Ref

No. Contract Title Contractor Annual Value (ex VAT)

Total Contract

Value incl Contract Start Date

SP-14-009 General Stationery and Office Paper Framework Lyreco £54,125.12 As per usage 01/06/2016

P12-020E Internal Audit and Associated Services Scott-Moncrieff £80,000.00 £400,000.00 01/05/2016

P12-023EE Actuarial Services Hymans Robertson £10,500.00 £20,625.00 01/03/2017

P14-041 Electronic Note Taking Louisa McDaid; Jackie Donati; Melanie Coulter; Gail Richardson £30,000.00 £30,000.00 13/07/2016

P14-057E Digital Services (SE) Dog Digital £71,232.00 £299,453.00 01/08/2016

P15-002 Research Online Idox £60,893.00 £304,465.00 01/07/2016

P15-036E Backup Technology Asigra Inc. £48,000.00 £48,000.00 30/06/2016

P15-063EEEE FIPS Programme Leidos £1,451,919.00 £1,451,919.00 15/03/2017

P15-079 Service Desk Tool Softcat PLC £89,198.40 £190,896.80 05/05/2016

P15-080 Deskside Support Services Dacoll Ltd £170,190.00 £683,640.00 07/07/2016

P15-081 MSP Survey PA Advocacy £8,100.00 £8,100.00 01/09/2016

P15-086 NTP - MA Provider Various £75,000,000.00 £75,000,000.00 04/04/2016

P15-087 NTP - MA Employer Various incl in above incl in above 04/04/2016

P15-088 NTP - Employability Fund Various £19,500,000.00 £19,500,000.00 04/04/2016

P15-099EE Licences - MS Dynamics & others Trustmarque £268,979.00 £268,979.00 01/07/2016

P15-110EE PACE Task Force Data System Advice Infrastructure £11,800.00 £11,800.00 08/03/2017

P15-118 Microsoft Licensing Insight Direct (UK) Limited £891,181.92 £2,673,545.76 27/04/2016

P15-217 Job Evaluation Korn Ferry £60,000.00 £60,000.00 11/04/2016

P16-001 Learning Managment System Media Corp £15,000.00 £43,085.00 01/06/2016

P16-001EEE Learning Managment System Media Corp £9,792.00 £9,792.00 01/06/2016

P16-003 Relationship Management Module Aviour Ltd £5,000.00 £15,000.00 23/05/2016

P16-005 Oil & Gas Tracker Advice Infrastructure £34,950.00 £34,950.00 01/04/2016

P16-005E Oil & Gas Tracker Advice Infrastructure £9,660.00 £39,700.00 01/04/2016

P16-006 Post Occupancy Evaluation MLA £9,235.00 £9,235.00 01/05/2016

P16-007 Training Provider for SDS Modern Apprenticeship Programme (MA-NTP) Jobs & Business Glasgow 29/04/2016

P16-008 Training Provider for SDS Modern Apprenticeship Programme (MA-NTP) You Train 29/04/2016

P16-010 Code Clan Commercial Modelling EKOS Limited £2,230.00 £2,230.00 02/05/2016

P16-011 Digital Schools Research & Best Practice Framework Key Link Partnership £25,000.00 £25,000.00 16/05/2016

P16-012 Software Licences Comparex £145,529.36 £727,646.80 17/10/2016

P16-013 Accredited Management Development Programme Leadership Factory £30,000.00 £90,000.00 27/06/2016

P16-014 Evidence Base Project Management Context Economic & Social Research £9,600.00 £9,600.00 29/05/2016

P16-017 Training Provider for SDS Modern Apprenticeship Programme (MA-NTP) Glasgow Kelvin College 27/05/2016

P16-018 PA support for the Chair EA Direct £46,125.00 £46,125.00 01/04/2016

P16-019 Agresso Upgrade (Project Penta) Unit 4 £108,024.00 £228,000.00 01/10/2016

P16-020 My WoW Market Place Digeratii £75,000.00 £75,000.00 02/06/2016

P16-021 My WoW Development Projects Inviqa Ltd £55,000.00 £55,000.00 02/06/2016

P16-023 Scotland’s Digital Technologies Sector Analysis Ekosgen £31,669.13 £31,669.13 22/07/2016

P16-025 REGIONAL SKILLS ASSESSMENTS 2016 Ekosgen £64,733.25 £64,733.25 12/07/2016

P16-026 Scotland Forecasting Work 2016 Oxford Econometrics £54,600.00 £54,600.00 15/07/2016

P16-027 PRINT SERVICES FOR SCOTTISH ENTERPRISE AND SKILLS DEVELOPMENT APS £270,158.80 As per usage 17/06/2016

P16-028 EIS Solutions Design Siva Limited £10,000.00 £10,000.00 15/06/2016

P16-029 My WOW eLearning Resource Aurion £21,450.00 £21,450.00 02/08/2016

P16-030 Foundation Apprenticeships 15/16 Starts – Formative Evaluation Research Scotland £27,150.00 £27,150.00 02/08/2016

P16-032 Insurance Services AON £48,010.31 £192,041.24 01/07/2016

P16-033 Childcare SIP Ekosgen £16,000.00 £16,000.00 08/08/2016

P16-034 MSP Survey PA Advocacy £6,100.00 £25,000.00 01/09/2016

P16-036 Skills Scotland Prospects £10,460.00 £10,460.00 26/10/2016

P16-037 Xpert HR Subscription Service Reed £7,235.00 £7,235.00 22/07/2016

P16-038 MyWOW Hosting Commerce Guys £13,725.00 £32,050.00 22/07/2016

P16-039 Desk and Room Booking System Computacenter £20,000.00 £40,000.00 18/10/2016

P16-040 Employment Services The Learning and Work Institute £25,000.00 £23,467.00 08/08/2016

P16-042 Skills Action Plan for Western Isles TERU £15,000.00 £15,000.00 15/09/2016

P16-043

Subject matter expertise and specialist support for Graduate level

apprenticeship (GLA) framework development - Lot 1 Engineering &

General Advisory Expertise

Odag Consultancy £20,833.00 £20,833.00 08/09/2016

P16-043

Subject matter expertise and specialist support for Graduate level

apprenticeship (GLA) framework development - Lot 3

Chartered Management Institute CMI £12,474.00 £12,474.00 08/09/2016

P16-043

Subject matter expertise and specialist support for Graduate level

apprenticeship (GLA) framework development - Lot 3

Chartered Management Institute CMI £34,666.67 £34,666.67 09/09/2016

P16-044 Technical Apprenticeships and Hnc Modules 3i £48,640.00 £48,640.00 01/09/2016

P16-045 Oil & Gas Transition Training Fund Nigg Skills Academy £173,450.00 £173,450.00 05/01/2017

P16-045 Oil & Gas Transition Training Fund James Duns House £16,000.00 £16,000.00 05/01/2017

P16-045 Oil & Gas Transition Training Fund South Lanarkshire College £624,620.45 £624,620.45 05/01/2017

P16-045 Oil & Gas Transition Training Fund Road Haulage Association £1,160,130.72 £1,160,130.72 05/01/2017

P16-045 Oil & Gas Transition Training Fund Traind'Up £128,900.74 £128,900.74 05/01/2017

P16-046 Telephony Charges Atos £90,000.00 £90,000.00 21/10/2016

P16-047 Licence to Practise ABA Procurement £9,854.00 19/09/2016

P16-048 Demand Statements for Apprenticeships Ekosgen £12,491.00 £12,491.00 09/08/2016

P16-048 Foundation Apprenticship Framework for Creative & digital Media Creative Skillset £27,300.00 £27,300.00 02/09/2016

P16-049 Foundation Apprenticeship for Life Sciences Cogent £37,600.00 £37,600.00 02/09/2016

P16-050 Inverness Skills Show DC Thomson £6,000.00 £6,000.00 01/08/2016

P16-053 SCDI Strategic Partnership SCDI £22,500.00 £22,500.00 08/08/2016

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A summary of regulated procurement expected to commence in the next two financial years is

available in Annex A of this report.

P16-054 ICT and Digital Technologies Extra Curricular Funding Framework ScotlandIS £41,600.00 £41,600.00 09/09/2016

P16-055 Call Manager Pro Solution Sentel £15,975.00 £15,975.00 01/07/2016

P16-056 SharePoint Services Provision Cobweb Solutions Ltd £15,000.00 £15,000.00 01/09/2016

P16-057 DND Hosting (Domain Management Demys £15,000.00 £15,000.00 01/08/2016

P16-058 Estate Professional Services GVA Grimley £50,000.00 £150,000.00 14/11/2016

P16-059 QCGD Napie, UWS £64,000.00 £64,000.00 14/09/2016

P16-061 Dundee Job, Skills and Apprenticeships Fair Dundee City Council (City Development Department) £5,000.00 £5,000.00 08/08/2016

P16-062 Design Services for My World of Work Myomuno £40,000.00 £40,000.00 24/09/2016

P16-063 Evaluation of Digital Xtra Hall Aitken £14,380.00 £14,380.00 14/10/2016

P16-065 MA in Career Development Career Studio £24,325.00 £24,325.00 01/09/2016

P16-066 Aberdeen Skills Strategy (STA) EKOS Limited £9,500.00 £9,500.00 22/09/2016

P16-068 Evidence Base Project Management (consultancy and STA) Context Economic & Social Reserach £9,600.00 £9,600.00 26/09/2016

P16-070 Buzz Learning Intervention Icould £6,000.00 £18,000.00 01/11/2016

P16-071 Advanced Metering Services Energy Assets £932.00 £4,680.00 01/11/2016

P16-072 LMI Resource for Schools What Could I Be (WCIB) £7,360.00 £7,360.00 01/08/2016

P16-073 My World of Work Skills Review tool Chunky Flower £30,000.00 £30,000.00 17/01/2017

P16-074 EFQM training, support and Quality Scotland Membership Quality Scotland £16,370.00 £35,075.00 10/10/2016

P16-075E NOS Virtual server Hosting and Mangement ONYX Group £19,228.52 £19,228.52 23/11/2016

P16-076 First Base First Base £3,190.00 £3,190.00 19/10/2016

P16-077 Training Provider for SDS Modern Apprenticeship Programme QA 14/11/2016

P16-078 CIAG Customer Feedback Questionnaires Edit Services £7,700.00 £7,700.00 25/10/2016

P16-079 IoD Strategic Partnership IoD £5,000.00 £5,000.00 19/10/2016

P16-080 SQA Star Awards SQA £5,000.00 £5,000.00 19/10/2016

P16-082 Workforce Resilience Initial Research Employment Research Institute £6,618.00 £6,618.00 09/12/2016

P16-083 Strengths Tool CAPP £21,500.00 £85,600.00 17/01/2017

P16-084 Business Continuity System Bis-Web t/a Clearview Continuity £12,000.00 £68,000.00 31/03/2017

P16-085 Employer Best Practice Guides Equate Scotland £8,306.00 £8,306.00 12/12/2016

P16-086 EIS Solutions Design Siva Limited £20,000.00 £20,000.00 01/12/2016

P16-087 SDS Factor Plan Pay Auditor £20,000.00 £20,000.00 01/12/2016

P16-091 Design and Delivery of a game to challenge attitudes around STEM Annimersion UK £19,300.00 £19,300.00 11/01/2017

P16-092 Subject Matter Expert - Engineering: design and Manufacture L10 SEE Enterprise Contracting £14,000.00 £14,000.00 30/11/2016

P16-093 Apprenticeship Offer Modelling and External Verification London Economics £11,775.00 £11,775.00 09/12/2016

P16-094 Business Analysis Tool for FIPS (TPC) North 52 £5,350.00 £5,350.00 05/02/2017

P16-095 GLA Framework Development Sue Dumbleton £3,980.00 £3,980.00 08/12/2016

P16-096 UK CES NOS Various £1,000,000.00 £2,000,000.00 01/04/2016

P16-097 Role Models and Mentors Girl Geek Scotland, Edinburgh Napier £17,000.00 £17,000.00 18/01/2017

P16-098 UCAS Data UCAS Media Ltd £24,400.00 £24,400.00 16/12/2016

P16-099 Experian CTS Licence compliance Experian £59,520.00 £59,520.00 01/01/2017

P16-101 Design and Delivery of Contract Management Training SCMG Ltd £3,000.00 £3,000.00 23/01/2017

P16-102 North America Lync & Telephony solution Siva Limited £10,000.00 £10,000.00 01/12/2016

P16-103 Delivery and Assessment of Core Skills FMT Consulting £7,000.00 £7,000.00 01/02/2017

P16-104 Young Scot Awards Media Events Scotland £15,000.00 £15,000.00 09/12/2016

P16-105 Employer Engagement Training (PACE) Pareto Law Ltd £9,863.00 £9,863.00 13/02/2017

P16-108 Presentation Skills Workshops Kissing with Confidence £5,952.96 £5,952.96 16/02/2017

P16-109 Usability Testing D8 £8,050.00 £8,050.00 13/02/2017

P16-111 Subject matter expertise GLA - Civil Engineering and Construction SCQF Institute for Civil Engineering £28,500.00 £28,500.00 17/01/2017

P16-116 Mediation and Conflict Training TCM £20,000.00 £20,000.00 09/03/2017

P16-117 Strategic Review of Payroll Function KPMG £17,000.00 £17,000.00 23/02/2017

P16-118 EIS Solutions Design Siva Limited £30,000.00 £30,000.00 10/02/2017

P16-119 Evidence Base Project Management (consultancy and STA) Context Economic & Social Research £9,900.00 £9,900.00 27/02/2017

P16-120 Microsoft Office365 Independent Review Valuta £4,875.00 £4,875.00 06/03/2017

P16-121 Development of Learning Materials to support FAs College Development Network £9,895.00 £9,895.00 10/03/2017

P16-123 Strenghts Tool Primary School Pupils Digital Connextions £9,600.00 £9,600.00 01/03/2017

P16-125 Marketing Automation System Marketo £9,800.00 £9,800.00 23/03/2017

P16-128 Microsoft Azure Licences (FIPS) Trustmarque £46,037.16 £46,037.16 01/11/2016

P16-129 Agresso eRecruiter Configuration Unit 4 £5,000.00 £5,000.00 06/03/2017

P16-135 Skills Provision for Subject Matter expertise- GLA RICS £15,000.00 £15,000.00 03/04/2016

P16-136 Door Replacement (Montieth) Interact Interiors £15,388.11 £15,338.11 01/03/2017

P16-141 Business case for diversity Genanalytics £8,320.00 £8,320.00 09/01/2017

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5. SDS Contracted Expenditure through Regulated Procurements

Financial Year 2016/17

A requirement of our Central Procurement Team is to work with internal customers and to

develop new contracts. We also conduct IT procurements on behalf of Scottish Enterprise

and Highlands and Islands Enterprise through the EIS Shared Service which is based on

the Gartner Service Towers. During the Financial Year 2016/17 (1 April 2016 to 31 March

2017):

112 new central contracts were placed by SDS.

48 Grants were disbursed by SDS

The total number of contracts placed and grants disbursed during Financial Year 2015/16

was therefore 160.

Total expenditure for SDS during the Financial Year 2016/17 is illustrated in Figure 2

below. The chart highlights that 99% of our expenditure was made through regulated

procurements, indicating 99% contract compliance achieved. The 1% expenditure not

covered by regulated procurement includes low value, ad hoc and mostly non-recurring

purchases, such as professional memberships and individual training courses, purchased

with the Government Procurement Card.

Figure 2: SDS spend in 2016/17

Figure 3 shows the trends in number of contracts placed over the last five Financial Years.

As is shown, there has been a significant rise in the number of contracts awarded over the

last five years. The total number slightly dipped in 2016/17, but this is due to the tenure of

contracts already awarded. We anticipate that having matured and stabilised, the total

number of annual contracts awarded will remain fairly constant over the next three to five

years.

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Figure 3: Number of Contracts Awarded by SDS 2012 - 2017

Highlights from our procurement activity in 2016/17 include:

SDS leading the Procurement for the UK Commission for Employability and

Skills National Occupational Standards. This was a collaborative effort led by

SDS which incorporated requirements from the devolved administrations of

Scotland, Wales and Northern Ireland.

The new Enterprise Subscription Agreement (ESA) for Microsoft was awarded

on 27 April 2016. Insight Direct (UK) Ltd was our chosen Licenses Service Provider.

The agreement provides Skills Development Scotland, Scottish Enterprise &

Highlands & Islands Enterprise with one contract covering: MS Dynamics for SDS &

SE, Enterprise Cloud Suite covering OFFICE 365, Windows 10 and Azure Active

Directory. Savings of approximately 38% were realised through purchasing the ECS

suite of products.

The new contract for the provision of Software Licences and Associated

Services was awarded to Comparex UK Ltd. This provides a reliable and

compliant route to market for a range of software providers.

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6. Value for Money savings

Value for money is a principle tenet of public sector procurement: “meeting customer’s

requirements at the lowest wholelife cost”. We use a standardised method for calculating

Value for Money, calculating reductions made against historical cost. The total value for

money savings realised on central contracts placed by SDS during Financial Year 16/17

was £833,672.16.

Figure 4: Value for Money Savings Achieved in 2016/17

The SDS VFM savings trend over the last 5 years is as below. Year on year fluctuations

reflect the nature of in-year contracts awarded:

Figure 5: Value for Money Savings Achieved from 2012-17

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7. Supplier Inclusion

Supplier inclusion supports sustainable procurement and is of significant importance to SDS. We are pleased that we have a diverse range of suppliers / providers to deliver the wide range of services which we provide and contribute to our successes including SMEs, Socio-Economy organisations and Supported Businesses. 64% of SDS’s expenditure during the reporting year was with SMEs which is greater than the Scottish public sector average, and an increase of 4 percentage points on the previous year. Put simply, 64 pence in every £1 SDS spent in 2016/17 went to small and medium size enterprises.

The Third Sector

Third sector covers the voluntary sector, charities and social enterprises (including social

firms and supported businesses).

As shown in Figure 6 SDS has significantly increased the level of business placed with

Third Sector organisations over the last 5 years. Third Sector is a term covering the

voluntary sector, charities and social enterprises (including social firms and supported

businesses).

Figure 6: Approximate SDS expenditure in the Third Sector since 2010.

Financial Year Approximate expenditure with Third Sector Organisations

2010/11 £250,000

2011/12 £10,300,000

2012/13 £10,400,000

2013/14 £11,000,000

2014/15 £12,000,000

2015/16 £11,000,000

2016/17 £11,000,000

Socio-economy organisations provide a valued service to SDS in engaging with

disadvantaged groupings. SDS has worked with Ready for Business in developing our

approach to the Third Sector.

Supported Businesses

Supported businesses are a sub-section of the third sector. The aim of a supported

business is the social and professional integration of disadvantaged or disabled persons

where at least 30% of the employees are disadvantaged or disabled. SDS has instructed

prime contractors to call-off services from supported businesses where appropriate.

Article 20 of the EU Directive 2014/24/EU allows for the direct award of contracts, and includes businesses where 30% of the workforce is considered disadvantaged or disabled. Our Central Procurement Team were able to reserve contracts under Article 20 and call-off from the Scottish Government’s Supported Businesses Framework for a number of goods and services. SDS direct expenditure with supported businesses has been as shown in Figure 7.

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Figure 7: SDS expenditure with supported businesses since 2014

Supported

Business Project / Service

Financial Year

2014/15 2015/16 2016/17

Redrock Digitisation Project £27,482 £27,135 £1,663

Haven Recycling Disposal of IT kit £482 £2,805 £380

8. Community Benefits

We include Community Benefits Clauses within major contracts with an aggregate value

greater than £1M.

Community Benefits Clauses (CBCs) are contractual clauses which can be used to build a

range of economic, social and environmental conditions into the delivery of public

contracts. CBCs can contribute to the Best Value and Sustainable Procurement agendas

and allow organisations to benefit their communities by specifying requirements which

seek to deliver wider social benefits.

Our clauses have directly led to:

MITIE recruiting 8 employees through our Total Facilities Management contract.

CGI and Leidos each starting one Modern Apprentice while providing IT services to

SDS.

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9. Learning, Development and Supporting Entrants to the Sector

All members of the SDS Procurement Team have completed the central government Procurement

Competency Framework. The easy-to-use competency framework identifies gaps and areas for

personal development. At SDS, we have now developed and adopted a common Learning and

development template based on the Four Pillars of the Global Occupational Standards as shown

below:

As an organisation, we need to differentiate between Grant Funding and Procurement and

follow the appropriate processes. Training on Grant v Procurement was conducted over

four dates in February 2016. This has now been made an e-learning module available

through our online Academy for all staff who require training.

Entrants to the sector

We have an inclusive approach to Talent Management for new entrants and seek to attract

and develop new people to the profession.

SDS has supported three newcomers to advance in Procurement as their career of choice.

They each entered procurement by different routes; as an employee moving across to the

procurement team from another business area, as a school leaver and as a university

Graduate. They will each follow the pathways set out in Figure 8.

In 2016/17, our graduate intern successfully completed her CIPS Diploma and was also

successful in becoming a permanent member of staff. Our first Modern Apprentice in

Procurement is now employed with us as a Procurement Assistant and has completed her

CIPS Foundation qualification.

Process Performance

Spend Analysis Benefits Tracking & Measurement

Market Analysis Key Performance Indicators

Specification Development Service Level Agreements

Contract Law Six Sigma (continuous improvement)

Tender Process (Procurement Journey) Project Management

Negotiation

Contract Management Infrastructure

Supplier Relationship Management Ethical Standards & Conduct

Supply Chain Management European & Scottish Procurement Legislation People

Leading & Influencing Governance & Compliance

Stakeholder Relationship Management Bribery Act

Communications CIPS Fraud Master Class (prevention)

Managing High Performing Teams CIPS Exams & Study Leave

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Figure 8: SDS pathways into Procurement

10. Continuous Improvement Activity

Continuous Improvement is a core value at SDS. Below is a summary of some of the ways in which the SDS Procurement Team have looked to drive improvements in the past year.

Contract Management Benchmarking

SDS completed the CMB survey conducted through the Supply Chain

Management Group in September 2016 for the third consecutive year.

Benchmarking is used to improve our approach to contract life cycle

management.

SDS Business Excellence Self Assessment

Procurement completed the Business Excellence Self Assessment,

November 2016. The self assessment process was extremely worthwhile

and we were delighted to be ranked silver in our first assessment. Key areas

for improvement have been identified and are managed through the

Continuous Improvement Action Plan.

Use of GCloud

The GCloud framework has seen reported sales in excess of £1.26 billion

across the UK Public Sector in less than 2 years since launch. 53% of the

business has been awarded to SMEs. In 2016/17 the SDS Central

Procurement Team produced an internal auditable pro-forma with embedded

guidance notes for SDS colleagues to assist using GCloud for procurements.

GCloud desktop guidance is also available. The award for hosting our My

World of Work web service, conducted through GCloud, has secured savings

of £54,000.

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SDS external Procurement page updated

The procurement pages on the SDS Corporate website were updated in

December 2016 to improve ease of access to key information on SDS

procurement which is set out in simple and concise sections on:

Procurement Policy

Contracts Register

Law and conditions of Purchase

Supplier Inclusion

Performance

Our Procurement People

Responsible and Sustainable Procurement

Procurement Strategy for Scottish Ministers SPPN 11/2016

Annex A. Summary of regulated procurements expected to commence

in the next 2 Financial Years

(Values may be subject to change due to budget revisions/resource availability)

Value 2017/18 Value 2018/19

NTP – Modern Apprenticeships (£81.2M) (£81.6M)

FA & GLA Promotion £429k £328k

Employability Fund £17M £17M

Evaluation and Research £277k £285k

UK CES National Occupational Standards £1.16M £1.16M

Property, Facilities & Carbon Management £6.85M £7.06M

Enterprise & Information Systems Information Technologies & Systems (Shared service with Scottish Enterprise and Highlands and Islands Enterprise)

£15.1M £15.6M

Training & Development £490k £490k

Digital Skills £1M